In recent years, data-based marketing has swept through the business world. In its wake, measurable performance and accountability have become the keys to marketing success. However, few managers appreciate the range of metrics by which they can evaluate marketing strategies and dynamics. Fewer still understand the pros, cons, and nuances of each. This chapter introduces market metrics and explains how they can help better understand marketing data and make better business decisions.

This chapter is from the book

In recent years, data-based marketing has swept through the business world.
In its wake, measurable performance and accountability have become the keys to
marketing success. However, few managers appreciate the range of metrics by
which they can evaluate marketing strategies and dynamics. Fewer still
understand the pros, cons, and nuances of each.

In this environment, we have come to recognize that marketers, general
managers, and business students need a comprehensive, practical reference on the
metrics used to judge marketing programs and quantify their results. In this
book, we seek to provide that reference. We wish our readers great success with
it.

1.1 What Is a Metric?

A metric is a measuring system that quantifies a trend, dynamic, or
characteristic.1 In virtually all disciplines, practitioners use
metrics to explain phenomena, diagnose causes, share findings, and project the
results of future events. Throughout the worlds of science, business, and
government, metrics encourage rigor and objectivity. They make it possible to
compare observations across regions and time periods. They facilitate
understanding and collaboration.